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Ministry of Electricity finalises contracts for new power station in Banha

By Salah El-Monoufy The Yokogawa Company won a supply and installation contract for information control and transfer systems for the Banha electricity project worth EGP 10 million. A coalition of Japanese companies including Hitachi and Toyota won a supply and installation contract for mechanical systems for the project same projectworth EGP 165.5million. An Italian company, …

The Yokogawa Company won a supply and installation contract for information control and transfer systems for the Banha electricity project worth EGP 10 million. A coalition of Japanese companies including Hitachi and Toyota won a supply and installation contract for mechanical systems for the project same projectworth EGP 165.5million. An Italian company, Termomeccanica,won a supply and installation contract for drinking water.

Dr. Hassan Younis, Minister of Electricity and Energy, said that the three contracts mean that the electricity sector hasfinalised contracts related to the Banha’s electricity generation station project. The project is one several projects that are part of a five-year planforthe 2012-2017 period. The station will feature a compound generator, producing third of its power without consuming fuel. The generator is composed of two gas units and two boilers plus a steam unit.

It has been decided that the station’s simple circuit will begin to operate in June or July of 2013, with thecompound circuit in going into operation in June 2014. In addition, the station will be linked to the national electricity grid at 220kvoltage to unload its energy.
The President of theEgyptian Electric Holding Company, Mahmoud SaadBalbaa, estimated the costs of the project at EGP 4.2 billion.

A number of Arab funds such as the Arab Fund for Economic & Social Development, the Kuwait Fund for Arab Economic Development, the Islamic Development Bank, the Abu Dhabi Fund for Development, in addition to the Saudi Development Fund, and the OPEC Fund will contribute financing. Middle Delta Electricity Production Company willcontribute to financing the domestic component of the project with its own resources.

Ahmad Sowan, President of the Middle Delta Electricity Production Company, the company, which owns the project, noted that Banha’s power stationwill allow as many Egyptian companies in the electricity sector to work on the projectin an attempt to maximize domestic contributions.

Meanwhile, the Minister of Electricity and Energy announced yesterday that the Abo Kir electricity station is operating at 650 megawatts. The unit will eventually operate on the national grid at full power. Initial operating tests are being conducted on the second unit in preparation to begin operations in September.

Balbaasaid in a statement yesterday that construction of an above ground power line west of Damietta Al-Gamaleya is being finalised. The line is16 kilometres long and supported by65 transmission towers. The line will transport energy from west Damietta station to the national electricity grid.

The minister noted that both the Abo Kir and west Damietta projectswould have been completed last May, but residents in the areas objected. Residents prevented construction companies from entering the area of the Abo Kir project. In addition, residents of Damietta demanded exorbitant compensation in the areas through which the overhead power line will pass.